This stock is set to go to $1.50.IBA Health Limited (IBA) is the...

This stock is set to go to $1.50.

IBA Health Limited (IBA) is the largest health information technology company
listed on the ASX. The company’s market leading software applications manage
the administrative clinical and financial needs of organisations across the health
sector. This includes 50% of Private Hospitals in Australia and a growing presence
amongst leading hospitals in New Zealand, South East Asia, the Middle East and
South Africa.
Investment Summary
Under the leadership of the relatively new CEO Stephen Garrington, IBA has
become increasingly sales focussed and launched its market leading product into
the global arena. Despite being a relatively small player when compared to its
global peers, IBA has impressively received a warm welcome and quickly gained a
strong reputation in the market. IBA’s strategy is to win sales with leading
hospitals in overseas markets that will boost its credibility and make further sales
easier. This strategy is already playing out nicely as a number of leading hospitals
have started to use its technologies – this should become the thin end of the
wedge for IBA.
The acquisition of the medical services provider MEDICOM late last year will assist
this direction however is yet to hit the bottom line. MEDICOM’s established global
distribution network will support entry into new overseas markets, facilitate the
cross selling of products, offer new licenses, and increase speed to market through
a larger team. IBA Health is a ‘buy’ at current levels.

Checklist:
CEO Stephen Garrington has generated a
sales focussed culture.

Growing international presence in leading
hospitals.

MEDICOM acquisition has strengthened
IBA’s global distribution network.

A renegotiated agreement with Kodak
may provide inroads to China.

The stock has emerged from a wedge
reversal pattern into an uptrend.


From 2002 to 2004 stock traded in a consolidation pattern that
was broken when the stock moved into a major advance to the
90c level. A downward wedge formation was then formed until
the stock reached critical support at the 36.5c level. At this point
the wedge formation was broken, signalling the end of the
downtrend. Resistance at the 73c level is currently being tested,
a break through this will see the next clear line of resistance at
the 90c level.